1. International Business Environments and Operations, 13/e
Part 5
Global Strategy, Structure, and Implementation
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2. The Organization of International Business
Chapter 15
The Organization of International Business
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3. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Chapter Objectives
Profile the evolving understanding of organizing a company for international business
Describe the antecedents and features of traditional structures
Describe the antecedents and features of contemporary structures
Study the systems used to coordinate and control international activities
Profile the role and characteristics of organization culture
Link the ideas of strategy and organization in the international company
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4. Organizing Operations
Organizing is the process of creating the structure, systems, and culture needed to implement the company’s strategy.
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5. Factors Affecting Organizing Operations
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6. Change: The Critical Factor
Changes in the market environment and nature of work push managers to rethink how they organize their workplace.
Trends inducing change:
Expansion of International Business
Importance of Knowledge as a Competitive Advantage
The Internet as a Design Standard
Workplace Adjustments
Managerial Adjustments
Changing Social Contract
Global Credit Crunch and Rising Unemployment
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7. Organization Structure
Structure: formal arrangement of jobs within a
company that specifies roles, responsibilities,
and relationships
Vertical Differentiation
Horizontal Differentiation
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8. Vertical Differentiation
Centralization versus Decentralization in Organizational Design
Centralization: degree to which high-level managers make strategic decisions and delegate them to lower levels for implementation.
Decentralization: degree to which lower-level managers make and implement strategic decisions.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

9. Horizontal Differentiation
Functional Structure
Advantages and Disadvantages
Divisional Structure
International Division
Product Division
Geographic Division
Matrix Structure
Unity of Command Principle
Mixed Structure
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10. Contemporary Structures
Network Structure
Virtual Organization
Pitfalls of Contemporary Structures
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11. Coordination and Control Systems
Approaches to Coordination:
Standardization
Plan
Mutual Adjustment
Control Methods:
Market
Bureaucratic
Clan
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12. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Control Tools
Reports
Visits to Subsidiaries
Cost and Accounting Comparisons
Evaluative Metrics
Information Systems
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13. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Organization Culture
The Importance of Culture
Culture and Values
Culture and the Value Chain
Challenges and Pitfalls
Organization Culture and Strategy
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14. Future: The Role and Rise of Corporate Universities
Managers believe companies must purposefully develop shared values
Worldwide, more than 1,000 new corporate universities have begun operations
Corporate universities—physical and virtual institutions that:
Lead training efforts
Facilitate learning
Help upgrade competencies
While advocating the philosophical ideals of the company’s culture
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15. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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